Strengthening returns across all varieties, but particularly for Green growers and reducing fruit waste so we maximise the amount of fruit we sell.
Aligning commercial incentives to our growing environment and customer expectations.
How we respond to the expansion of unauthorised Gold3 plantings in China, protect industry workers from exploitation, respond to climate change, and ensure offshore production supports our domestic industry too.
Lifting grower shareholding of Zespri and increasing the number of growers owning a licensed variety.
Including better reporting, industry decision making, more clarity and flexibility in supply agreements, and a clear strategy for supply chain infrastructure development.
One of the key workstreams within the industry alignment framework is industry decision-making. This reflects feedback we’ve heard from many growers who want to better understand how decisions are made about industry policy, and consider whether this needs to be reviewed.
The primary objectives of this project are:
While a major focus of our industry alignment work is ensuring we’re continuing to improve industry decision-making so that all growers have a voice in our industry’s future, there are times when industry representatives want to have decisions reviewed.
For growers, the first point of contact should be New Zealand Kiwifruit Growers Inc (NZKGI) who are the grower representative body. NZKGI advocate for all growers and provide a wide range of support and advice, including on what might be the best approach to raise issues with the Industry Advisory Council (IAC) or Industry Supply Group (ISG).
If growers have a complaint relating to the supply of fruit, they should discuss this directly with their registered supplier. Issues can also be raised with NZKGI and Zespri.
If growers feel that Zespri is not complying with the Kiwifruit Export Regulations, they should contact Kiwifruit New Zealand (KNZ) who are the regulatory body whose role is to ensure Zespri is meeting all of its regulatory requirements.
Registered suppliers also have a number of options available to them if they wish to review a decision as outlined in their supply agreements, with the ISG and IAC also in place to consider significant issues.
Phase 1: Stakeholder Consultation (2025)
Objective: To gather insights and feedback from growers, suppliers, and other industry participants on current decision-making processes and areas for improvement.
1 - Conduct surveys and interviews with key stakeholders.
2 - Organise focus group discussions and workshops.
3 - Analyse feedback and identify common themes and concerns.
Phase 2: Process review and improvement
Objective: To review the current decision-making processes of the IAC and ISG and identify opportunities for enhancement.
1 - Map out existing decision-making processes and workflows.
2 - Identify bottlenecks, inefficiencies, and areas lacking transparency.
3 - Develop recommendations for process improvements, including changes to voting mechanisms, meeting structures, and communication protocols.
Phase 3: Implementation and monitoring
Objective: To implement the recommended improvements and monitor their effectiveness.
1 - Develop an implementation plan with clear timelines and responsibilities.
2 - Conduct training sessions for IAC and ISG members on the new processes.
3 - Establish monitoring and evaluation mechanisms to track the impact of the changes.
4 - Gather ongoing feedback from stakeholders and make the necessary adjustments.
The successful implementation of this project is expected to result in:
The Industry Advisory Council (IAC) is a pan-industry body comprising of five representatives each from Zespri, NZKGI, and registered suppliers. It acts in the best interest of the kiwifruit industry as a whole and is tasked with considering significant pan-industry issues, including strategic industry policy, governance and structure, and provides recommendations to the Zespri Board and other industry groups.
The IAC reviews any matter previously dealt with by the Industry Supply Group (ISG) and approves amendments to the Loyalty Agreement and Supply Agreement. It also reviews the Enduring Funding Agreement and Zespri Segment Allocation Manual.
Decision making process:
Voting within the IAC is conducted in three electoral colleges representing each membership group. Each group functions as an "electoral college" and each IAC member has one vote. For a vote to pass, a majority of the members in each electoral college must vote in favor. Specifically, at least three of the five representatives in each group must support a recommendation for it to be approved.
Transparency and participation: IAC meetings are held bi-monthly and are open forums where growers and industry participants can attend or observe. Other groups may also be invited to provide additional information, subject to confidentiality requirements. Speaking rights are reserved for the designated representatives unless pre-agreed with the Chairman.
The Industry Supply Group (ISG) includes five representatives from Zespri, one representative from each of the 13 Registered Suppliers, and three grower-appointed representatives from NZKGI. Its function is industry and operational focused, including supply chain management, insurance matters, reviewing the pooling process, rules, pricing and payments, and debating and negotiating the Supply Agreement.
The ISG reports to the IAC, where the IAC may review matters previously dealt with by the ISG and any review of an ISG decision should only be made after consultation with the ISG Chairperson. The ISG are accountable to Zespri through the Zespri Executive to the Zespri Board, to Registered Suppliers through their supply entities to growers and post-harvest, and to NZKGI through the NZKGI forum to growers.
Decision-making process:
Most decisions within the ISG are made by consensus among the three parties (Zespri, Suppliers and NZKGI). However, if consensus cannot be reached, a recommendation must be supported by both Zespri and Registered Suppliers representing 70 percent of the industry's trays. A single supplier representing 30 percent of the trays cannot veto a recommendation supported by all other suppliers. Zespri, Registered Suppliers and NZKGI may request consultation time on material issues.
Highlights of some of the progress we’ve made on our other workstreams include:
Zespri’s efforts to address unauthorised Gold3 plantings in China have taken a significant step forward in 2025, with the Wuhan Intermediate People’s Court ruling in favor of Zespri in its plant variety rights infringement case. The court ordered the removal of 260 hectares of infringing plant material and awarded NZ$1.28 million in compensation, reinforcing the strengthened intellectual property protections introduced under China’s revised Seed Law. Despite this legal win, the challenge remains substantial, with the latest report suggesting a slight increase in total planted hectares as outlined in the table below.
As with previous years the estimate is based on interviews with industry participants in China. The report estimates that fruit quality and orchard yields have continued to improve. Class 1 equivalent pack out rates are estimated to be around 70% on average, with improved pollination and pest control contributing to an average yield of approximately 6,500 – 7,500 trays per hectare.
At this stage, Zespri is yet to see significant impact on our sales channels and we are continuing to monitor the situation closely. There remains strong local awareness of the monitoring and enforcement initiatives being undertaken by Zespri, including successful litigation in China, with continued feedback from the industry indicating that local growers are waiting on clarity on Zespri's next steps. This will be a subject of discussion with growers this year, as we consider our best response as an industry.
We’ll be coming back to the industry for a discussion on possible options to complement our legal and commercial efforts to protect our channels and mitigate the impact of China Gold3.
| Location | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2026 est. % change from midpoint |
|---|---|---|---|---|---|---|---|---|---|
| Sichuan | 1,600 | 2,667 | 4,000 | 5,000 | 5,200 | 5,300 | 4,300 - 5,300 | 5000 - 6000 | 15% |
| Hubei | 467 | 533 | 533 | 600 | 667 | 700 | 700 | 700* | 0% |
| Shaanxi | 200 | 267 | 400 | 467 | 800 | 853 | 660 | 500 | - 24% |
| Other | 333 | 533 | 733 | 1,000 | 1,200 | 1,533 | 800 | 900 | 12.5% |
| Total | 2,600 | 4,000 | 5,666 | 7,067 | 7,867 | 8,386 | 6,460 - 7,460 | 7,100 - 8,100 | 9% |
Source: 2025 and 2026 data from Mahon China; other columns from previous provider
NB – Hubei remains the same as last year due to no new data to the contrary.
We’ve made good early progress on this, with Zespri welcoming 327 new grower shareholders as a result of the now completed 2025 Loyalty as Shares (LaS) and Dividends as Shares (DaS) offers. This has increased the proportion of growers who own Zespri shares from 48 percent to 61 percent. These results are ahead of the targets we set for our first year, reflecting strong grower engagement and participation, and the potential impact of well-designed initiatives that address barriers to ownership and make the process simple for growers.
LaS and DaS will be offered again in 2026, with some changes to the eligibility criteria. Find out more here.
| Goals | Targets |
|---|---|
| Improve the percentage of New Zealand growers that own Zespri shares (going wider) | At least 75 percent of New Zealand growers are Zespri shareholders by 2030 |
| Improve shareholder alignment (going deeper) | At least 60 percent of New Zealand growers hold shares at a ratio of between 0.5 and 2.0 shares per tray of production by 2030 |
| Seek to minimise shareholding for non-producing growers and/or those significantly overshared | The percentage of dry shares, and shares above the 6:1 cap, are below five percent by 2028 |
Zespri’s refreshed Green strategy is focused on strengthening grower returns by driving market performance and improving productivity. We’re leveraging brand-led demand to maintain premium pricing and optimise allocations across key markets, supported by the recent breakthrough of green kiwifruit becoming the first fresh fruit to receive an authorised health claim from the European Commission. On-orchard, work continues to lift yields per hectare through improved growing systems and tools, while cost management remains a priority, with initiatives underway to reduce controllable costs, including quality-related expenses. Innovation is also central to the strategy, with trials of new high-yielding green cultivars that deliver better taste and storage performance, ensuring we stay ahead of competitors and meet evolving consumer expectations. Engagement remains key, with annual Green Grower Town Halls providing a forum for growers to share insights and help shape the future of the Green category.
ZGS continues to play a critical role in delivering Zespri’s 12-month supply strategy, ensuring we maintain strong customer relationships and protect grower returns. Following the Producer Vote, growers overwhelmingly supported the expansion of offshore SunGold production, approving up to 420 additional hectares per year across key Northern Hemisphere regions including Italy, France, Japan, South Korea, and Greece. This expansion is already underway, with planting progress on track and ZGS fruit flowing into markets as the New Zealand season winds down.
Reducing fruit waste continues to be a top priority, with a strong focus on lifting fruit quality and minimising loss across the supply chain. This season has seen continued improvements in onshore and offshore fruit loss management, supported by enhanced digital systems that provide real-time visibility of inventory and allow proactive decisions to move softer fruit earlier, reducing quality-related costs.
Innovation remains central to Zespri’s strategy, with the Kiwifruit Breeding Centre (KBC) accelerating the development of new cultivars to meet evolving consumer needs and deliver greater value to growers. Currently there are around 20 pre-commercial varieties in the pipeline, including green, gold, red, and KiwiBerry options, all undergoing rigorous orchard, supply chain, and market trials. These trials assess everything from canopy establishment to storage performance and consumer appeal. Red80, a promising red cultivar, is progressing well and complements the existing RubyRed™ offering, helping extend the sales window and attract new consumers. Alongside breeding innovation, Zespri continues to refine licence release mechanisms, with the ascending auction system confirmed for the 2026 release. This approach ensures transparent allocation and supports growers in accessing high-value varieties that strengthen industry resilience and returns.
We continue to run short surveys through independent research agency Primary Purpose as part of our commitment to hearing from growers on key industry issues. These surveys remain a vital tool alongside day-to-day engagement, helping us capture a wide range of perspectives on priorities, challenges, and opportunities for improvement. The latest survey focuses on how Zespri can best prioritise industry issues and maximise value for growers. We’ll share a summary of the results once complete, ensuring grower feedback informs decision-making and future planning.
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